Objective:
The Conceptual Framework is a body of interrelated objectives and fundamentals. The objectives identify the goals and purposes of financial reporting, and the fundamentals are the underlying concepts that help achieve those objectives. Those concepts provide guidance in selecting transactions, events, and circumstances to be accounted for, how they should be recognized and measured, and how they should be summarized and reported. A Statement of Financial Accounting Concepts is nonauthoritative and does not establish or change generally accepted accounting standards.
On June 8, 2023, the Financial Accounting Standards Board (FASB) issued FASB Concepts Statement No. 8, Conceptual Framework for Financial Reporting—Chapter 2, The Reporting Entity.
The objective of general purpose financial reporting described in FASB Concepts Statement No. 8, Conceptual Framework for Financial Reporting—Chapter 1, The Objective of General Purpose Financial Reporting, references the concept of a reporting entity; however, the Conceptual Framework did not describe a reporting entity. Because the Conceptual Framework is intended to be a coherent system of interrelated objectives and fundamental concepts, there has been a need to develop a concept of the reporting entity. Chapter 2 addresses this need in the Conceptual Framework by defining and describing the concept of the reporting entity in the context of general purpose financial reporting.
Additional Information:
The Conceptual Framework is a body of interrelated objectives and fundamentals. The objectives identify the goals and purposes of financial reporting, and the fundamentals are the underlying concepts that help achieve those objectives. Those concepts provide guidance in selecting transactions, events, and circumstances to be accounted for, how they should be recognized and measured, and how they should be summarized and reported. A Statement of Financial Accounting Concepts is nonauthoritative and does not establish or change generally accepted accounting standards.
On June 8, 2023, the Financial Accounting Standards Board (FASB) issued FASB Concepts Statement No. 8, Conceptual Framework for Financial Reporting—Chapter 2, The Reporting Entity.
The objective of general purpose financial reporting described in FASB Concepts Statement No. 8, Conceptual Framework for Financial Reporting—Chapter 1, The Objective of General Purpose Financial Reporting, references the concept of a reporting entity; however, the Conceptual Framework did not describe a reporting entity. Because the Conceptual Framework is intended to be a coherent system of interrelated objectives and fundamental concepts, there has been a need to develop a concept of the reporting entity. Chapter 2 addresses this need in the Conceptual Framework by defining and describing the concept of the reporting entity in the context of general purpose financial reporting.
Additional Information: